Dao
No longer a newbie, moving up!
sooo what is the conclusion here?
would you recommend D40?
The point is any entry level dslrs are good. You can capture wonderful photos with it if it is what you are looking for.
All dslr cameras have limitations. Sony people will prefer Sony camera, Canon people will prefer Canon, Nikon people will prefer Nikon... Olympus ... Pentax ... I really do not think in the entry level DSLR market, one is much better than the others. (even in the upper level)
If you are tight in budget at this moment, and really would like to get a dslr camera now but do not know what to get, I do not see anything wrong with going with the D40 or any other entry level dslr cameras.
Use it for a year or two, once you learn more you will know what you like to get next in regarding camera body.